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2015 (8) TMI 1019 - AT - Income TaxDisallowance of exemption u/s. 54 - assessee did not produce any purchase agreement with regard to investment in the residential flat at Thane - Held that:- Section 54 of the Act speaks about investment of capital gains arising from transfer of a long term capital asset within a specified time. As per s/s. 2 to Sec.54 if such proceeds / capital gains, if not invested /utilized for purchase of new asset, within specific time then such proceeds will have to be deposited in a specified bank account and has to be utilized in any scheme which the Central Govt. notifies and proof of such shall be accompanied with the return. There is no requirement in the Act that necessarily the assessee has to produce the agreement more specifically when the letter of allotment along with proof of payment/investment was duly produced before the concerned authorities. See Smt. Jyothi K. Mehta case [2011 (1) TMI 551 - KARNATAKA HIGH COURT] To our mind to attract Sec.54 and Sec.54EC of the Act what is material is the investment of sale consideration in acquiring the new property or investment of the amount in bonds set out in sec.54EC is to be seen and once the sale consideration is invested in any of these manner the assessee would be entitled to the benefit conferred under this provision - Decided in favour of assessee.
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